Justia Energy, Oil & Gas Law Opinion Summaries

In the case involving BP America Production Company and Debra Anne Haaland, the United States Court of Appeals for the Tenth Circuit affirmed the district court's ruling upholding the agency order requiring BP to pay nearly $700,000 in correctly assessed royalty underpayments. BP argued that the Federal Oil and Gas Royalty Simplification and Fairness Act shielded it from these payments. However, the court rejected BP's interpretation of the Act. The court found that BP's obligation was a single monetary obligation of $905,348.24, not each of the 443 constituent royalty obligations. Therefore, BP did not meet the statutory condition of less than $10,000 for relief from liability for payments. The court also rejected BP's argument that the Secretary's "deemed" final decision lacked a reasoned basis and thus violated the Administrative Procedure Act. The court found that the Secretary's deemed final decision adopted the ONRR Director's decision on the issues raised. View "BP America Production Company v. Davis, et al." on Justia Law

In the case before the United States Court of Appeals for the Sixth Circuit, Jennings Maynard, a coal miner with severe respiratory issues, filed a claim for benefits under the Black Lung Benefits Act. After his death while the claim was pending, his widow, Elizabeth Maynard, filed a claim for survivor’s benefits. The Administrative Law Judge (ALJ) awarded benefits to Elizabeth Maynard on behalf of her late husband and as his surviving spouse. The Benefits Review Board affirmed this decision. The petitioner, Island Creek Coal Company, sought review of the award.The court denied the petition for review. The court explained that Maynard had worked in the coal mining industry for over forty-three years and had developed severe respiratory issues. Maynard's widow, Elizabeth, filed a claim for survivor's benefits after her husband's death. The ALJ awarded benefits to Elizabeth, both on behalf of her late husband and as his surviving spouse. The Benefits Review Board affirmed this decision.The court held that substantial evidence supported the ALJ's findings that Maynard was totally disabled due to his elevated PCO2 values and that the petitioner failed to provide persuasive contrary evidence. The court also found that substantial evidence supported the ALJ's conclusion that the petitioner failed to rebut the presumption that Maynard's respiratory impairment, which contributed to his total disability, arose out of coal mine employment. The court determined that the ALJ properly discredited the medical opinions offered by the petitioner's experts because these opinions were inconsistent with the regulations of the Black Lung Benefits Act and the Department of Labor's determinations. The court therefore denied the petitioner's request for review. View "Island Creek Coal Co. v. Elizabeth Maynard" on Justia Law

The United States Court of Appeals for the Third Circuit reviewed a consolidated action related to the Federal Energy Regulatory Commission's (FERC) acceptance of a tariff filed by PJM Interconnection, L.L.C. (PJM), a Regional Transmission Organization managing a system that serves around fifty million consumers in thirteen mid-Atlantic and Midwestern states and the District of Columbia. The tariff was challenged by PJM Power Providers Group and Electric Power Supply Association, two nonprofit associations representing energy generators, and Pennsylvania Public Utility Commission and Public Utilities Commission of Ohio. The challengers argued that the tariff, which was approved by inaction due to a deadlock among FERC commissioners, was arbitrary and capricious. The court disagreed, ruling that FERC's acceptance of the tariff was not arbitrary or capricious and was supported by substantial evidence. The court also confirmed that it could review FERC's inaction under the Federal Power Act. View "PJM Power Providers Group v. FERC" on Justia Law

The Supreme Court affirmed in part and reversed in part the judgment of the district court ruling in favor of the Montana Environmental Information Center and Sierra Club (collectively, Conservation Groups) and vacating the Montana Department of Environmental Quality's (DEQ) permit for Westmoreland Rosebud Mining, LLC's proposed coal mine expansion, holding that the Board of Environmental Review (Board) made several errors when it upheld DEQ's findings.Specifically, the Supreme Court held (1) the district court erred in concluding that reversal of the burden of proof was prejudicial error; (2) the Board committed reversible error in limiting the Conservation Groups' evidence and argument; (3) the district court erred in determining that it was reversible error to admit certain testimony as proper rebuttal; (4) the Board erred when it concluded that no water quality standard violation could occur; (5) the Board properly considered cumulative impact of mining activity in its analysis; (6) the Board properly relied on evidence regarding aquatic life; (7) the attorney fee award was improper; and (8) the district court erred in ruling that the Board was properly included as a party on judicial review. View "Mont. Environmental Information Center v. Westmoreland Rosebud Mining" on Justia Law

In 2018, Presidential Proclamation 9693 imposed duties on imports of solar panels, starting at 30% and scheduled to decrease each year to 25%, 20%, and in the final year, 15%. Importers of bifacial solar modules, consisting of cells that convert sunlight into electricity on both the front and back of the cells, petitioned the U.S. Trade Representative (USTR), asking that bifacial solar panels not be subjected to the duties. Ultimately, bifacial solar panels were excluded from the duties. In October 2020, Presidential Proclamation 10101, “modified” Proclamation 9693 to withdraw the exclusion of bifacial solar panels from the scheduled duties, and to increase the fourth-year duty rate to 18%. IImporters of bifacial solar panels sued, alleging that the statute authorizing the President to “modify” Proclamation 9693 only allowed him to make previously adopted safeguard measures more trade-liberalizing while eliminating the exclusion of bifacial panels and raising the fourth-year duty were trade-restrictive. They further argued that even if the President had the authority to “modify” safeguards in a trade-restrictive direction, he failed to follow appropriate procedures.The Trade Court agreed that the authority to “modify” a safeguard is limited to trade-liberalizing changes but rejected the procedural challenges under the Trade Act, 19 U.S.C. 2251. The Federal Circuit reversed. The President’s interpretation of the statute, which allows him to “modify” an existing safeguard in a trade-restricting direction, is not unreasonable. In adopting Proclamation 10101, the President committed no significant procedural violation. View "Solar Energy Industries Association v. United States" on Justia Law

The Supreme Court affirmed the decision of the Board of Equalization affirming the Wyoming Departments of Audit and Revenue's mineral tax audit assessments of Chesapeake Operating, LLC's oil and gas production, holding that the State Board of Equalization did not misinterpret Wyo. Stat. Ann. 39-14-203(b)(iv) when it found that Chesapeake's field facilities did not qualify as processing facilities.On appeal, Chesapeake argued that the Board erred in concluding that Chesapeake's facilities qualified as processing facilities under the mineral tax statutes and that the proper point of valuation for its gas production was at the custody transfer meters. The district court certified the case directly to the Supreme Court, which affirmed, holding that the Board correctly interpreted and applied Wyo. Stat. Ann. 39-14-201(a)(xviii) when it found that the seven facilities at issue were not processing facilities. View "Chesapeake Operating, LLC v. State, Dep't of Revenue" on Justia Law

The Supreme Judicial Court vacated the judgment of the superior court reversing the decision of the Town of Eliot's board of appeals vacating the planning board's approval of a large solar array project, holding that the project did not fit the definition of "public utility facility" within the meaning of the Town zoning ordinance.Odiorne Lane Solar, LLC applied to the Planning Board for a approval to build a large solar array project on land located in the Town's rural district. The Planning Board approved the application. The board of appeals, however, vacated the approval. The superior court vacated the board of appeals' decision. The Supreme Judicial Court vacated the superior court's judgment, holding that, at the relevant times for this application, the ordinance did not permit the location of the project within the rural district. View "Odiorne Lane Solar, LLC v. Town of Eliot" on Justia Law

The Supreme Court affirmed the orders of the Ohio Power Siting Board approving two large solar farms that were proposed to be built in Preble County, holding that the Board's order was neither unlawful nor unreasonable.The General Assembly authorized commercial solar farms in Ohio but made their construction conditional on the Board's approval. The Board approved the solar farms after its staff agreed to stipulations imposing a number of conditions on the construction and operation of the facilities. Certain citizens appealed. The Supreme Court affirmed, holding that there was nothing unlawful about the Board's adherence to its own regulations and that the Board did not act unreasonably in making the determinations required by Ohio Rev. Code 4906.10(A). View "In re Application of Alamo Solar I, LLC" on Justia Law

In this review of a decision of the Public Service Commission relating to rates charged by Florida Power & Light Company (FPL) for the provision of electric service, the Supreme Court held that the Commission had not supplied a basis for meaningful judicial review of its conclusion that the settlement agreement provided a reasonable resolution of the issues, established reasonable rates, and was in the public interest.The settlement agreement at issue was between FPL and seven parties that intervened in the matter and permitted FPL to increase its base rates and service charges. After hearing arguments in favor of and against the settlement agreement the Commission concluded that the agreement "provides a reasonable resolution of all issues raised, establishes rates that are fair, just, and reasonable, and is in the public interest." The Supreme Court reversed, holding that remand was required because the Commission failed to perform its duty to explain its reasoning. View "Floridians Against Increased Rates, Inc. v. Clark" on Justia Law

The Supreme Court affirmed the orders of the Public Utilities Commission of Ohio approving a stipulation that authorized Dominion Energy Ohio to implement its capital expenditure program rider (CEP Rider), holding that the Commission's orders were not unlawful or unreasonable.Dominion filed an application to recover the costs of its capital expenditure program by establishing the CEP Rider at issue. Dominion and the Commission jointly filed a stipulation asking the Commission to approve the application subject to the staff's recommendations. The Commission modified and approved the stipulation. The Supreme Court affirmed, holding (1) the Commission did not violate an important regulatory principle in adopting the 9.91 percent rate of return; (2) the Commission did not inconsistently apply its precedent; (3) the Commission did not violate Ohio Rev. Code 4903.09; and (4) Appellants' manifest-weight-of-the-evidence argument failed. View "In re Application of East Ohio Gas Co." on Justia Law